Are you considering filing for bankruptcy for your business entity in Pennsylvania? Given the complex process bankruptcy is, don’t think of doing it on your own without consulting an experienced Pittsburgh bankruptcy lawyer. If you are handling your case improperly and making unwanted mistakes in the documentation, you will have to face long-lasting repercussions. The aim of bankruptcy filing should be to benefit your company. And for that, we, Pittsburgh Bankruptcy Law Group can help. We have the necessary experience and expertise to help you and guide you through this complex legal procedure.How Does Chapter 11 Bankruptcy or Reorganization Bankruptcy Work in Pennsylvania?
Bankruptcy is a powerful financial tool that, when properly and strategically utilized, can not only help you get rid of debts but also help you manage your long-term financial goals and objectives. Bankruptcy is not only the option for those who cannot manage their debts and finances. It can be helpful for small and large businesses that can include limited liability companies, corporations and partnerships.
There are various types of U. S. Bankruptcy Code. For businesses, one needs to file under Chapter 11 bankruptcy that is also referred to as a reorganization plan. Though this type of bankruptcy is not as common as the other two types of consumer bankruptcy, yet it can give your finances a fresh start.
The process of chapter 11 bankruptcy starts when the business owner or the filer files the petition at the right court. For this state, it will be the United States Bankruptcy Court for Eastern District of Pennsylvania. Just like the Chapter 13 bankruptcy, a filer in Chapter 11 is also considered as the debtor in possession. They need to comply with the repayment plan that the trustee will come up with and the court will approve.
Once, the court approves the repayment plan, there are certain debts that you have that will be discharged or eliminated while the other non-dischargeable debts will be addressed in the repayment plan. As a business owner and the bankruptcy filer, you need to adhere to the plan religiously and consistently. For the time span, depending on the complexity of the case, it might take several years for getting the discharge of the bankruptcy case.
If you are worried that chapter 11 is a lengthy process with a lot of complications, then you need to know that this type of filing can be extremely beneficial for you, be it a small business, mid-size business, or large corporation. In fact, this can be a very effective way to save a company when the business is on the verge of collapsing. An experienced Pittsburgh bankruptcy lawyer will skillfully manage the case so that you get benefited from the filing. With Chapter 11 filing, you can get the much-needed time that will help you create a viable plan for getting finances on the right track. You will also get the automatic stay that will allow you to get relief from the collection actions like foreclosure, repossessions and bank levies.
While chapter 13 is a good option for those who are sole proprietors, chapter 11 bankruptcy can be a great option for partnerships and corporations. Come to us at Pittsburgh Bankruptcy Law Group today to know about it more.